More than half of chief executives in Ireland believe the country’s economic growth will decline over the next 12 months, despite hopes that the euro area could avoid a recession in 2023. But major job cuts are not on the horizon.

A global CEO survey published by PwC included responses from 87 company bosses in Ireland, among 4,410 global business leaders in 105 countries.

However, although 52% said they thought Ireland’s growth will decline this year, a third still think it will improve. The survey also found that 85% of CEOs in Ireland are confident about the revenue growth prospects for their companies in 2023. That compares with 89% globally.

Even as they cut costs in the current high-inflation environment, 79% of CEOs surveyed in Ireland don’t plan to cut jobs this year and 89% said they don’t intend to cut pay amid the fight to retain talent.

The PwC survey found that inflation and macroeconomic volatility remain key concerns for chief executives in Ireland. Just over a fifth of them also feel “financially exposed” to geopolitical conflict.

The study reveals that Irish CEOs are seeing multiple direct challenges to profitability within their own industries over the next 10 years. More than half (53%) see changes in regulation impacting profitability followed by labour/skills shortages (51%), technology disrupters such as advanced tech, AI, the metaverse or blockchain, and changing customer demand or preferences (49%).

More than third (34%) of Irish business leaders believe that employee resignation/retirement rates will increase in the year ahead, about the same as the 36% global score.

Nearly half are increasing investment in cybersecurity and data privacy, and 46% are diversifying their product and service offerings.

“Despite the many uncertainties and risks impacting our economy, the survey suggests that Irish CEOs are confident about their own businesses,” PwC Ireland Managing Partner Feargal O’Rourke said.

“Irish CEOs are also more confident about Ireland’s economy than global CEOs are about the global economy, which may well be due to the relative strength of the Irish economy at the moment. Re-evaluating their operating models, continued investment in critical areas and putting their people front and centre are key to ensuring resilience.”

He said that despite the global headwinds, Ireland’s economy remained in a “good position”, with strong fiscal returns, foreign direct investment inflows, strong exports and employment.